Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-07-08
SHORT AND LONG HAuLs.

SHORT AND LONG HAULs.
f. Porter Alexander has contributed to
the Questions of the Day" series mono
graph on railway practice, in which are
some very thoughtful remarks upon the
short and long-haul question Mr.. Alex
ander points out very clearly that the APP
parent injustice of charging more, in GER
tain cases, for a short than long haul of
freight or passengers, is but apparent and
not real. This, because the so-called "dis-
elimination" is the memorable result of
geographical facts and laws Of trade, which
are more powerful than railway managers,
Cars or despots. Water competition first
gave birth to discrimination by giving
lower rates TO competitive points This
competition, Of which determinations are
born, determines also their g sizes or the
extent 10 which they must go. Rates TO
intermediate points have nothing to do
with the case. Now, if the competitive
traffic cannot be obtained at, or will not
bear, a rate as high as reasonable inter
mediate locals, it must be reduced below
them" He then presents diagram show
ing rates between Harrisburg, Pa, and
San Francisco, the comparison of rates
being made by horizontal lines at right
angles TO vertical columns, giving dis
tances and rates in cents both war and
peace rates.. The Ogden rate shows the
longest line, and they shorten botl, east
and west of it TO the minimum at either
end. He asks: Why are the rate
points west of Ogden less than the Ogden
1ates2 Because if they were greater no
freight would take the overland route for
those points, but it would go around to
San Francisco by the Isthmus or Cape
Horn, and come back eastward to its des-
tination by short rail haul on the Cen
trail Pacific, for less money These points
possess the natural advantage of being
nearer the ocean than Ogden. and neither
railroad official nor law of Congress can
deprive them of it,"
The monograph vas written before the
passage OF the interstate commerce law
Mr.. Alexander speaks, therefore, of the
Reagan bill in the following extract:
And what must be the result if the Reagan
PHI ! passed and the overland lines forhidSe,
10 take Il less rate on the longer hauI9 They
calnct advance the san Francisco rates stnev
aye contributed by the water routes 80 they must
either reduce the rates 10 all interior points or
simply TtiiTe from the san Francisco business
tvidertly they viii take that horn OF The
dilemma which viii least affect their net
-rvcnue 'e'
10 reduce the ~ticuding r.,tes between Omaha
and Ogden 10 the san francisco rates yvouId no
T" ee- on t,le iine> representing them by yerti-
tal through the San Francisco rail rates as in
iicated OF. IN figures, when the railroad aud
ne Ni'es lines are at peace every rate above
= - would have 10 be reduced 20 that figure.
ana when they were in active rompefifion
cents. " %
Vow bear in mind that every cent of this re-
duciiOn IS los ont OF net revenue. for the ~
ieuse OF doing the business rcuains unchsugei
Also, Two Other facts, not Indicated by tue table
pui y great importance in determining the
question. tlrst, the amount of local business
nion which rates would have 10 be reduced. is
p-oeanly three times as great as the through
u lress N question second. the net revenue
on TINS through business, done at such low
rates, Is probably not third of the net revenue
when Won q be lost upon the local pound for
pound by the reduction. Evidently the profits +.
II, - A1AAAudu> Npulu DC rs niue too In favor
OF simply abandoning the entire through husi
ness, and continuing itself TO the local. They
could not even force any compromise with the
water routes, for the latter would annreciate
that the railroads could not afford to enter into
competition, but were bound hand and foot hv
me tying together of local and competitive
rates.
Now let Us see who would be benefited nv This
result We VIII suppose that the law was
passed az the request of Ogden which felt itself
eguaIageo ny having TO pay s. IA Tor what san
nr n,
atui pay us " IL ana the railroad which does
us business VIII lose onc-ninth of its not
IlescIlee, ana run one-third less trains. Evil
Gently Ogden Is rather injured than benefited
As TO san Francisco, il must then gel its
ltclght entirely by Isthrsus and sail In tbst
ny o"is ttEsols oenehted are the carriers by
Niio are relieved from rail competition. or have
4 handicapped with severe penalties Should
We lo.I me ends OF our lines representing rates
10 the table, we would have line which we
might call the curve of rates n riseS ms il
IeaV nsNigahe waters, and falls as il an
pFoacnes them There is an apparent exception
u thi.t therels no point higher than Chicago
between that place and New York Their
we're such points in former tariffs, and durinf-
rate vans there viii be again but the sholtnesS
VI me distance, the proximity of lakes and
rivers on each side of the line. the number n
sharply competing railroads. the cheapness of
ooat ana IRON, and the dense population of the
country have enabled the railroads TO take
taem OUT when they are at peace and can main
tain rates. But over long lines across NOM
AIMS ano deserts. and in thiuly settled coun-
ttlss the curve 81 rates will always rise over the
Interior. think ii safe 10 predict on mo ran
continental lines, the curve will always retain
Is present general character, while traIisrorta
&C an 9"'''i -
k9llrescs may be Forbidden by law. and un-
lie heavy penalties, TO work for such long haul
business, but the rates Will be there all the
sam. and no one viii be benefited by the rail-
Teads exclusion from them but the Pacific Mail
steamers ana the clippers around the Horn.
Mr.. Alexander, writing before the inter-
state-oommerce-legal experiment, now
proves to have been prophet The argu-
men's he uses are precisely in line with
those set out in these columns uniformly
and maintained by all the students of rail
road economics who have impartially writ
Ten upon the subject.